Bitcoin ETFs Attract $15B Amid Trump’s Fed Criticism and Bullish Market Bets
U.S. spot Bitcoin ETFs have pulled in a significant $15 billion over the past three months, driven partly by mounting political pressure on the Federal Reserve to cut interest rates.
Those steady inflows are forcing previously cautious traders back into the market, fueling renewed optimism for Bitcoin, says Markus Thielen, founder of 10x Research.
“The surge in bitcoin ETF inflows since late April has been driven largely by political pressure on the Fed,” Thielen wrote in a client note Thursday. “Donald Trump has been vocal about wanting Jerome Powell to cut rates to 1% and resign. What started as a partisan narrative has broadened, with figures like FHFA director Bill Pulte and Senator Cynthia Lummis also calling for Powell to step down over his hawkish stance.”
Trump’s repeated attacks on the Fed have drawn comparisons to Turkish President Recep Tayyip Erdogan, who forced out central bank officials between 2019 and 2021 when they refused to lower rates—a move that ultimately crashed the Turkish lira and triggered capital flight.
Trump contends that Powell’s refusal to cut rates has cost the U.S. economy billions. Meanwhile, minutes from the Fed’s July 17–18 meeting revealed internal divisions, with some officials supporting rate cuts as early as this month, while others favor holding rates steady, according to CNBC.
Traders Rush to Add Exposure
Amid this political backdrop, traders are rapidly boosting their bullish exposure to Bitcoin.
“Since mid-April, Bitcoin ETFs have accumulated $15 billion worth of inflows,” Thielen said. “The buying hasn’t slowed, even as bitcoin has consolidated since mid-May. Derivatives data suggests under-positioned traders are now scrambling to re-enter the market.”
Many traders are betting on further gains by purchasing call options with strike prices around $130,000, signaling confidence that bitcoin might soon climb even higher. Call options are financial contracts that increase in value if the underlying asset rises.
This surge in optimism coincides with bitcoin’s historically strong performance in July. Data from Coinglass shows bitcoin has posted gains in eight of the past twelve Julys, averaging more than 7% returns for the month.
“Add in bitcoin’s typically strong seasonality in July and potential bullish catalysts from macroeconomic data or policy announcements, and the case for more upside remains compelling,” Thielen added.
Bitcoin recently reached a record high, trading just shy of $112,000 on several exchanges late Wednesday, according to CoinDesk data.
